This document provides an analysis of the gems and jewellery industry in India and focuses on Tanishq as a leading jewellery brand. It discusses that the Indian gems and jewellery market size is $25 billion and gold imports increased significantly from 2011 to 2012. Tanishq was launched in 1994 and now has over 160 stores across India. The document outlines Tanishq's vision, mission and analyses their strengths, weaknesses, opportunities and threats. It also examines their business model, strategies and proposes introducing children's cartoon character jewellery to target a new customer segment.

1. Strategic Management Project Report-2015
By-
Vinu Praveen

2. Gems and Jewellery Industry Analysis:
Gems and Jewellery sector is an important emerging sector in the economy. It is also
a leading sector for foreign exchange generation. There are two major segments; Gold
and Diamonds.
The current market size of the Indian Gems & Jewellery Industry is US$ 25 Billion.
In 2012, gold imports in India increased by 68% annually from 579 tons in 2011 to 970
tonnes.
The total export of Gems and Jewellery in the year April March 2013 was 302081.11
with a 3.36% growth rate and 21.27% share in the total export.
The demand for gold increased by 10% annually globally to 3,971 tons in 2012.
Gold prices continued to be erratic in the month of July 2012 and touched a high of
Rs. 29,983 per 10gm.
The Gems and Jewellery Industry has started to show positive signs of improvement
and growth.

3. Indian Retail Jewellery Overview
Yesterday Today
Unbranded Branded
Silver and Gold Jewellery Gold and Diamond Jewellery
Investment Investment plus Fashion
Traditional design Fashionable and innovative design
The size of the Indian Gems and Jewellery market was USD 30.1
billion in 2011 and is expected to be USD 45 billion by 2015 on the
back of increasing domestic demand. The countries where demand is
increasing for Indian jewellery include the UAE, the US, Russia,
Singapore, Hong Kong, Latin America and China.

4. Tanishq
 Tanishq started in 1994 and challenged the established family jewellery
system prevalent in India.
They have set up production and sourcing bases with thorough research of
the jewellery crafts of India. Their factory located at Hosur, Tamil Nadu (India)
spreads over 135,000 sq. ft (12,500 m2).
Tanishq was launched as a range of jewellery and jewellery watches meant
for the European & American markets, but later on, shifted its focus on Indian
markets to tap the domestic opportunity too.
Tanishq introduced innovations like Karat meter, the only non-destructive
means to check the purity of gold and machine made jewellery.

In India, Tanishq has country wide presence. In November 2012, Tanishq
reached a landmark when it opened its 150th showroom in India.
Today, with over 160 opulent stores in over 80 Indian cities, Tanishq
continues to rule the jewellery space.

5. Vision and Mission Statement of Tanishq
Vision:
To be world class, innovative, progressive, organizations and to build
India’s most desirable jewellery.
Recognised and respected as an organization for excellence and
trusted leadership of the jewellery industry.
Financial independent.
Retail skill.
Ethics and Industry conducted for the Jewellery Industry.
They create elevating experiences for the people they touch and
significantly impact the world they work in.

6. Mission:
Total customer orientation.
Employee appreciation.
Performance culture and teamwork.
Creativity and innovation.
 Passion for excellence.
 Corporate Citizenship.
They will do this through spirit and a caring value driven culture, that
fosters innovation drives performance and ensures the highest global
standards in everything they do.

7. Analysis of Vision and Mission Statement of Tanishq
Vision:
The vision statement states that the organization will be world
class, innovative and is to create India’s most appealing
jewellery. They design elevating experiences for the people
they aim at and primarily affects the world that they work in.
Mission:
The mission summarizes that it's completely customer-
oriented and moreover, the organization believes in creativity
and innovation and have the spirit of passion for excellence in
the organization.

8. SWOT Analysis of Tanishq
Strengths:
One of the most trusted jewellery brands in India.
Strong backing of the Titan Industries of the Tata Group.
Excellent branding and advertising through TVCs and print ad campaigns
Association with celebrities as brand ambassadors to reach out to the
customers.
Apart from Indian jewellery in wedding and diamond collections, also offers
simplistic and low-priced jewellery for daily wear.
Has its presence in over 100 Indian cities.
Award winning designs.
Weakness:
Limited global presence as compared to a few other international brand.
Tough competition from other jewellery brands means limited scope of
growth.
While Tanishq offers wedding jewellery for various regions, there is a
common misconception that the brand is more suited for North Indians and
does not have a wide selection of traditional wedding jewellery for other
communities.

9. Opportunity:
Global penetration in other countries
Acquisition of smaller businesses to increase brand position and reach.
Tie-ups with corporate and business partners.
Tata Group’s jewellery division, Tanishq, will open up to 25 standalone stores
of its sub-brand ‘Mia’ by 2016 as it looks to grow turnover from the brand.
Threats:
Economic fluctuations mean people would decrease their spending.
Government policies, taxes etc also affect the premium jewellery segment.
Trends change quickly, hence innovations and R&D are investments.
New Companies Act compelled the company to discontinue the gold
schemes until they get a better understanding of the provisions to the new law.

10. Present Strategies of Tanishq
TRANSMIGRATION OF DESIGN
CONTINUOUS CHANGE IN DESIGN
OWN CHAIN OF RETAIL STORES
INTRODUCTION OF KARAT METER
RETURN GUARANTEE & EXCHANGE OFFER
STANDARDISED PRICE
ENTRY LEVEL PRICE
LINK WITH (ME)
LAUNCH OF (CSMM)
CORPORATE GOLD GIFT SCHEME
SEASONAL PROMOTION

11. Assessing the Present Strategies of Tanishq
Tanishq has always been successful in implementing its strategies to satisfy the
consumers in the market as their goal is to have a unique collection of jewellery
for women and other targeted customers.
The strategies are so specific that they mostly concentrate on regions and
communities and they try their best to match their needs and wants.
Moreover, they strongly maintain their loyalty status by returning particular gold
jewellery and also by making an exchange offer depending on purity. In
addition, they were the first ones to introduce the karat meter instrument which
enables to check the purity of gold through X-rays.

12. Business Model of Tanishq
According to Jacob Kurian, the chief operating officer of Tanishq, this helped
the company redefine its business purpose and focus."We are retailers," he
says. "We design, manufacture, market and build a brand, but the primary focus
is to define ourselves as retailers and create a unique proposition that
consumers can relate to.”
They had 27 per cent growth in revenue in 2013 and their intention to do this
was by increasing outlets, merchandise, more relevant pricing, building
communication. Moreover, they plan to open as many as 30 stores in this
financial year.
Titan in talks to buy 15% stake in Carat Lane for Rs 187 crore as per equity
stake (Titan draws a majority of its revenue (about 80 per cent) from its
jewellery business, Tanishq (largely through its brick and mortar stores).

13. Assessing the Business Model of Tanishq
Tanishq’s success in the business model is due to the innovation in designs and
in promotions and the valuable trust the Tata name invokes.
Designs; in the sense, they are mostly aware of the different roles played by
women and so, they have made a series of specific collections that have set a
new fashion in jewellery.
In fact, these are created with the Indian women in mind. Even today, they
make contemporary designs of jewellery and are always making it relevant for
them.

14. Propose a New Strategy and Fit it to a
Business Model
Tanishq can adopt a strategy that can help target children easily by introducing
contemporary jewellery of children’s favourite cartoon characters.
Children just love TV and especially cartoons so; they can wear ornaments of
their favourite cartoon characters such as Ben 10, Tom and Jerry, Chota
Bheem, Courage the Cowardly Dog and giving importance to mythological
characters such as Krishna, Rama, Arjuna, etc.
In fact, Tanishq can customize a very own ‘kids section’ area which would
automatically attract the young consumers. But, ornaments may not have pure
gold. It'll not be more than 10 karats. This can encourage more purchases.
Another strategy, that can be implemented which involves zodiac sign pendants
which is made out of their respective gem stones for example for zodiac sign
cancer, the respective gem stone is Ruby and the like.

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